Forum Energy Technologies, Inc. (NYSE:FET) Q4 2018 Earnings Conference Call Transcript

Feb 08, 2019 • 10:00 am ET


Forum Energy Technologies, Inc. (NYSE:FET) Q4 2018 Earnings Conference Call Transcript


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Good morning, ladies and gentlemen, and welcome to the Forum Energy Technologies Fourth Quarter and Full Year 2018 Earnings Conference Call. My name is Joelle, and I will be your coordinator for today's call. At this time, all participants are in a listen-only mode. And all lines have been placed on mute to prevent any background noise. We will be facilitating a question-and-answer session after the speakers' remarks. As a reminder, this conference call is being recorded for replay purposes. After the speakers' remarks today, I will instruct you on the procedures for asking questions.

I will now turn the conference over to Mark Traylor, Vice President of Investor Relations. Please proceed, sir.

Mark Traylor

Thank you, Joelle. Good morning, and welcome to Forum Energy Technologies fourth quarter and full year 2018 earnings conference call.

With us today to present formal remarks are Cris Gaut, Forum's Chairman and Chief Executive Officer; as well as Pablo Mercado, our Chief Financial Officer; and Lyle Williams Senior Vice President of Operations. We issued our earnings release last night and it is available on our website.

The statements made during this conference call, including the answers to your questions, may include forward-looking statements. These statements involve risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied in such statements. Those risks include, among other things, matters that we have described in our earnings release and in our filings with the Securities and Exchange Commission. We do not undertake any ongoing obligation, other than that imposed by law, to publicly update or revise any forward looking statements to reflect future events, information, or circumstances that arise after this call.

In addition, this conference call contains time sensitive information that reflects management's best judgment only as of the date of the live call. Management statements may include non-GAAP financial measures. For a reconciliation of these measures, refer to our earnings release. This call is being recorded. A replay of the call will be available on our website for two weeks following the call.

I'm now pleased to turn the call over to Cris Gaut, our Chief Executive Officer.

C. Christopher Gaut

Thanks, Mark. Good morning, everyone. The Board recently asked me to lead the company once again, and I'm very committed and motivated to increase our stock price, unlocking Forum's untapped value. I have been focused on ensuring that Forum will manage our business to the existing market conditions and will consistently generate free cash flow through the market cycle. We will have a cost-efficient business model and an emphasis on our winning products and strongest brands.

We are entering year five of the industry downturn from the 2014 peak activity levels. WTI oil is hovering around the low $50 per barrel price range, and the futures market is not much better. Based on our view that this lower industry operating environment is the new normal we have refreshed our strategy. Instead of positioning the company to take full advantage of a secular growth